You just won the lottery and have elected to receive 10 annual payments instead of the lump sum of $74,818.59. Calculate the amount of your annual payment assuming a 6% interest rate.
A)$17,178.90
B)$10,165.44
C)$18,000.00
D)$10,832.11

Question

Quizplus · Accepted Answer

The annual payment can be calculated using the formula for the present value of an annuity. Solving for the annual payment with a present value of $74,818.59, 10 payments, and a 6% interest rate results in approximately $10,165.44 per year.

You Just Won the Lottery and Have Elected to Receive